Potential Split as Sales and Net Losses Increase

  • Natura & Co exploring potential separation of Avon brand
  • Net losses widened to £143.6m (BRL934.9m) from £100m (BRL652m)
  • Sales dropped 5.7% to £937.73m (BRL6.1bn)
  • Avon International sales down 13.1% to £214.4m (BRL1.3bn)

Natura & Co is considering separating its Avon brand after reporting widening losses for another consecutive quarter. The former Body Shop owner’s net losses increased by 43.3% to £143.6m (BRL934.9m) compared to the previous year’s £100m (BRL652m). Sales dropped 5.7% to £937.73m (BRL6.1bn), which it attributed to a difficult quarter for beauty brand Avon. Avon International sales plunged 13.1% to £214.4m (BRL1.3bn) due to reduced representative activity from fewer available reps and weaker promotional execution. Natura & Co CEO Fabio Barbosa said the company is focusing on simplifying its market, enhancing portfolio, and improving profitability. The firm has offloaded Aesop and The Body Shop in the past year to strengthen its balance sheet and focus on Latin America business.°

Factuality Level: 7
Factuality Justification: The article provides accurate information about Natura & Co’s financial performance and the potential separation of its Avon brand, with some details about the company’s sales and CEO’s statements. However, it contains a digression about TikTok at the end which is not directly related to the main topic.°
Noise Level: 6
Noise Justification: The article provides relevant information about Natura & Co exploring a potential separation of its Avon brand due to financial losses and sales decline. However, the latter part of the article diverts into unrelated content discussing TikTok, which adds noise to the overall topic.°
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses financial topics such as interest rates and economic indicators, but it does not mention any specific events that directly impact financial markets or companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.°

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